Telecom Italia continues process of real estate disposals announced on 21 decembrer 2005, third tranche of properties sold to the Spazio Industriale fund

06/26/2006 - 00:00 PM

- + Text size
Print

THE VALUE OF THE TRANSACTION IS APPROXIMATELY 41.5 MILLION EURO, WITH A GROSS CONSOLIDATED CAPITAL GAIN OF APPROXIMATELY 20 MILLION EURO

THE OPERATION WILL HAVE A POSITIVE IMPACT ON TELECOM ITALIA GROUP FINANCIAL DEBT OF APPROXIMATELY 41 MILLION EURO BEFORE TAX

Telecom Italia states that as a part of its programme of real estate disposals for a total value of over 1 billion euro, approved on 21 December 2005 by the Board of Directors, its subsidiary Olivetti Multiservices on 26 June 2006 concluded the transaction of a third tranche of 54 properties to the closed-end fund denominated Spazio Industriale

The value of the transaction is approximately 41.5 million euro, with a gross capital gain of approximately 20 million euro.

The transaction will have a positive impact on the consolidated financial debt of the Telecom Italia Group of approximately 41 million euro, before tax.

The value of the transactions that took place on 29 December 2005 and on 30 March 2006 were  117 million euro the first one and 71 million the second.

The real estate’s disposal to Fondo Spazio Industriale, previously estimated to end on June 2006, will be executed by the end of December 2006.

Units in the Spazio Industriale fund were sold to institutional investors headed by The Cypress Grove International Funds, and participated with a minority stake by Pirelli & C. Real Estate.

Milan, 26 June 2006